GM enters into strategic partnership with Nikola MotorSeptember 15, 2020
The largest American automobile company General Motors has partnered with the young company Nikola and will help it in the production of the Badger electric pickup truck, as well as hydrogen trucks. Through the agreement, Nikola will be able to use GM’s Hydrotec fuel cells in the pickup and will benefit from not only the experience and reputation but also GM’s manufacturing processes.
In exchange for $ 2 billion for 10% of the share capital and the right to appoint one director to the Nikola Motor board of directors, General Motors will design, approve, license and manufacture electric and fuel cells for the Nikola Badger pickup truck. GM is using an Ultium battery and a Hydrotec fuel cell for these purposes, which will save Nikola $ 4 billion over ten years. Nikola will be the first company in the world to use GM’s Hydrotec fuel cells.
Partnering with such a major automaker and leveraging its expertise is a huge win for Nikola, a young company that made a name for itself a couple of years ago with several models of hydrogen tractors, a military buggy and a jet ski. GM also promised to support their production. At the beginning of 2020, Nikola also aimed at consumer vehicles and presented the characteristics of its future Badger hybrid pickup with a liquid hydrogen tank and battery.
According to Clean Technica, by signing the agreement, Nikola has reached a completely new level in the automotive industry. It will now benefit from the unique expertise of GM designers and engineers, manufacturing facilities and suppliers, and more importantly, General Motors’ reputation.
After signing the contract, Nikola founder Trevor Milton confirmed that the first deliveries of the Badger pickup truck will be postponed from 2021 to 2022, firstly, due to the pandemic, and secondly, because of the need to integrate a new partner into the production process. The pre-order for the $ 60,000 to $ 90,000 pickup was opened in June.
Nikola Motor has become another company that has not yet released any serial product, but has received a market value of more than $ 10 billion solely on prototypes, PR and successful partnerships. In this case, the company is already worth $ 20 billion.
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